Futures contracts for gold prices fluctuated in a narrow range tending to decline during the Asian session, overlooking the rebound of the US dollar index for the second session from its highest since September 29, according to the inverse relationship between them on the cusp of developments and economic data expected today, Tuesday, by the US economy, the largest economy In the world, which includes the US presidential elections.
At exactly 05:02 a.m. GMT, gold futures contracts for December delivery fell 0.21% to trade at $ 1,892.40 per ounce compared to the opening at $ 1,896.40 per ounce, knowing that the contracts started the session on a rising price gap after it was concluded Yesterday's trading was at $ 1,892.50 per ounce, while the US dollar index fell 0.04% to 93.99 compared to an opening at 94.03.
Investors are currently awaiting the US economy to reveal the industrial sector data for the largest industrial country in the world with the release of the factory orders index reading, which may show an acceleration of growth to 1.0% compared to 0.7% last August, and this comes in conjunction with the ongoing US presidential elections. In the United States, between the 45th US President, Republican Donald Trump, and Democratic candidate Joe Biden.
Other than that, concern about the outbreak of the second wave of the Coronavirus in the West, especially in Europe and the United States, remains amid fears of resorting to a global closure again after the closure of the largest European economies, Germany and France, and the closure of Britain during the weekend, according to the latest figures issued by the Health Organization Global, the number of cases infected with the Coronavirus has increased to more than 46.4 million and 1,198,569 people have died in 219 countries.
In another context, the International Monetary Fund has called on the G20 countries, on top of them the countries that are witnessing a significant increase in the number of new coronavirus infections, such as the United Kingdom and the United States of America, in addition to some European Union countries, to inject more financial stimulus beyond what was previously planned. To support economic conditions.
The fund also mentioned that in the event that the financial stimulus is stopped soon, especially before the end of the Corona debacle crisis, this will lead to a deterioration in the health situation in those countries extensively and will expose many companies to financial crises and may reach the stage of declaring bankruptcy, which will undermine the cycle of steps. The positivity achieved by some major industrial economies during the last period.
Technical analysis
The price of gold continued to rise yesterday, approaching the pivotal resistance 1901.80, and we notice that the price is starting to provide bearish rebound signals now, as it touched the resistance line that appears in the image, and is facing negative pressure formed by the moving average 50, in conjunction with the clear negative signs appearing on the stochastic indicator.
Thus, these factors encourage us to suggest the decline during the upcoming sessions, waiting for a test of 1860.90 as the next main target, taking into account that breaching 1901.80 will stop the suggested decline and lead the price to achieve more intraday gains.
The expected trading range for today is between 1860.00 support and 1905.00 resistance.
The expected general trend for today: Bearish.